De Beers

From ArticleWorld


Since its inception in 1888, De Beers holds the prestige of being the largest supplier of the best quality diamonds to the world market. Before the 20th century, De Beers occupied 90% of the world’s market and was called the giant producer of diamond jewelry. But after the 20th century, competition increased and many other companies gradually cropped up to capture the market. However, in spite of having a number of competitors, De Beers still rules the diamond market today.

De Beers was initially established in Johannesburg, South Africa, but has a London-based head office as well. Having their own mining and trading corporation, this group held a monopoly in the diamond market for many years. However, in 1994, the United States Justice Department charged them with antitrust violations for which they paid a fine of $10 million. However, their pleading guilty has allowed them to enter and trade directly with the huge American market, which is what they had wished to do.

Knowing that Americans are greatly fascinated with gemstones, purchasing almost $500 million worth of industrial stones and $60 billion worth of diamonds yearly, it did not take long for the De Beers group to expand. Using its monopoly and ability to successfully market its products, De Beers expanded its wings throughout the U.S.

De Beers extracts most of their diamonds from their own mines in South Africa and Botswana. Recently, however, they have undertaken a joint venture with Canada for the prospective mining of diamonds in that country.

History

De Beers was founded by Englishmen Cecil John Rhodes and Charles Dunell Rudd in 1888 in South Africa. The name 'De Beers' was derived from the last name of brothers Johannes Nicholas de Beer and Diederik Arnoldus de Beer, who owned the diamond farm called Vooruitzicht near the confluence of the Orange River and the Vaal River. The two brothers were unable to protect their farm from the diamond rush and sold it to Rhodes and Rudd. Two diamond mines were established on this very site along with another mine, Kimberley, South Africa. Rhodes and Rudd merged all three mines to form De Beers Consolidated Mines Limited.

The company always knew that their market was America and the Americans were their prime customers. Besides having a retail location in New York, it will also possess a second retail in the Beverly Hills, Los Angeles.


Marketing

'A Diamond is Forever' – one of the most powerful marketing slogans of all time. The De Beers catch phrase 'A Diamonds is Forever' revolutionized the diamond-buying public's ideas on diamonds and De Beers became a household name all over the world.

De Beers marketed its diamonds as eternal possessions and as the most significant expressions of love. Moreover, their brand embassies include popular celebrities; even the British Royal family is one of them. But their main promotional campaign has remained that diamonds hold eternal emotional value, which has successfully impressed not only the Americans, but people in all parts of the world including Japan. In fact, today Japan is the second largest country to buy De Beers' diamonds after America.

Ventures

De Beers has become an internationally acclaimed diamond empire. De Beers has successfully ventured into all the parts of the world, from London to Tokyo, Osaka to New York, and from Paris to Dubai.

Its stature has over-powered that of its competitors.